Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
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Textbook Question
Chapter 7, Problem 54P
Finding Missing Data
A new computer virus (AcctBGone) destroyed most of the company records at BackupsRntUs. The computer experts at the company could recover only a few fragments of the company’s factory ledger for March as follows:
Further investigation and reconstruction from other sources yielded the following additional information:
- The controller remembers clearly that actual
manufacturing overhead costs are recorded at $18 per direct labor-hour. (The company assigns actual overhead to Work-in-Process Inventory.) - The production superintendent’s cost sheets showed only one job in Work-in-Process Inventory on March 31. Materials of $15,600 had been added to the job, and 300 direct labor-hours had been expended at $36 per hour.
- The Accounts Payable are for direct materials purchases only, according to the accounts payable clerk. He clearly remembers that the balance in the account was $36,000 on March 1. An analysis of canceled checks (kept in the treasurer’s office) shows that payments of $252,000 were made to suppliers during the month.
- The payroll ledger shows that 5,200 direct labor-hours were recorded for the month. The employment department has verified that there are no variations in pay rates among employees (this infuriated Steve Fung, who believed that his services were underpaid).
- Records maintained in the finished goods warehouse indicate that the finished goods inventory totaled $108,000 on March 1.
- The cost of goods manufactured in March was $564,000.
Required
Determine the following amounts:
- a. Work-in-process inventory, March 31.
- b. Direct materials purchased during March.
- c. Actual manufacturing overhead incurred during March.
- d. Cost of goods sold for March.
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The Falcon Company does not maintain backup documents for its computer files. In June, some of the current data were lost, and you have been asked to help reconstruct the data. The following beginning balances on June 1 are known:
Direct Materials Inventory
$
12,900
Work-in-Process Inventory
5,400
Finished Goods Inventory
13,900
Manufacturing Overhead Control
25,500
Accounts Payable
6,900
Reviewing old documents and interviewing selected employees have generated the following additional information:
The production superintendent's job cost sheets indicated that materials of $3,500 were included in the June 30 Work-in-Process Inventory. Also, 390 direct labor-hours had been paid at $6.00 per hour for the jobs in process on June 30.
The Accounts Payable account is only for direct material purchases. The clerk remembers clearly that the balance in the Accounts Payable on June 30 was $8,900. An analysis of canceled checks…
The Falcon Company does not maintain backup documents for its computer files. In June, some of the current data were lost, and you have been asked to help reconstruct the data. The following beginning balances on June 1 are known:
Direct Materials Inventory
$
12,000
Work-in-Process Inventory
4,500
Finished Goods Inventory
11,000
Manufacturing Overhead Control
16,500
Accounts Payable
6,000
Reviewing old documents and interviewing selected employees have generated the following additional information:The production superintendent's job cost sheets indicated that materials of $2,600 were included in the June 30 Work-in-Process Inventory. Also, 300 direct labor-hours had been paid at $6.00 per hour for the jobs in process on June 30.The Accounts Payable account is only for direct material purchases. The clerk remembers clearly that the balance in the Accounts Payable on June 30 was $8,000. An analysis of canceled checks indicated…
The Falcon Company does not maintain backup documents for its computer files. In June, some of the current data were lost, and you have been asked to help reconstruct the data. The following beginning balances on June 1 are known:
Direct Materials Inventory
$
12,000
Work-in-Process Inventory
4,500
Finished Goods Inventory
11,000
Manufacturing Overhead Control
16,500
Accounts Payable
6,000
Reviewing old documents and interviewing selected employees have generated the following additional information:
The production superintendent's job cost sheets indicated that materials of $2,600 were included in the June 30 Work-in-Process Inventory. Also, 300 direct labor-hours had been paid at $6.00 per hour for the jobs in process on June 30.
The Accounts Payable account is only for direct material purchases. The clerk remembers clearly that the balance in the Accounts Payable on June 30 was $8,000. An analysis of canceled checks indicated…
Chapter 7 Solutions
Fundamentals Of Cost Accounting (6th Edition)
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